Summary

Warren, Reeve, and Fess deliver again. This book presents balanced coverage of both financial and managerial topics. The authors refine their proven approach to accounting's expanding role in business.

Table of Contents

Introduction to Managerial Accounting and Job Order Cost Systems

1

(50)

The Differences Between Managerial and Financial Accounting

2

(2)

The Management Accountant in the Organization

4

(1)

Manufacturing Cost Terms

5

(2)

Materials

5

(1)

Factory Labor

6

(1)

Factory Overhead Cost

7

(1)

Cost Accounting System Overview

7

(1)

Job Order Cost Systems for Manufacturing Businesses

8

(10)

Materials

9

(1)

Factory Labor

10

(2)

Factory Overhead Cost

12

(3)

Work in Process

15

(1)

Finished Goods and Cost of Goods Sold

16

(1)

Sales

17

(1)

Period Costs

17

(1)

Summary of Cost Flows for Goodwell Printers

18

(1)

Job Order Costing for Decision Making

18

(3)

Job Order Cost Systems for Professional Service Businesses

21

(30)

Practice Set: Sunblaze Inc.

This set is a manufacturing business operated as a corporation that uses a job order cost system. It can be solved manually or with the General Ledger Software.

Process Cost Systems

51

(36)

Comparing Job Order Costing and Process Costing

52

(1)

Physical Flows and Cost Flows for a Process Manufacturer

53

(2)

The First-In, First-Out (Fifo) Method

55

(6)

Determine the Units to Be Assigned Costs

56

(1)

Calculate Equivalent Units of Production

57

(2)

Determine the Cost per Equivalent Unit

59

(1)

Allocate Costs to Transferred and Partially Completed Units

60

(1)

Bringing It All Together: The Cost of Production Report

61

(1)

Journal Entries for a Process Cost System

62

(2)

Using the Cost of Production Report for Decision Making

64

(1)

Just-in-Time Processing

65

(22)

Cost Behavior and Cost-Volume-Profit Analysis

87

(44)

Cost Behavior

88

(6)

Variable Costs

88

(2)

Fixed Costs

90

(1)

Mixed Costs

90

(3)

Summary of Cost Behavior Concepts

93

(1)

Reporting Variable and Fixed Costs

94

(1)

Cost-Volume-Profit Relationships

94

(2)

Contribution Margin Concept

94

(2)

Mathematical Approach to Cost-Volume-Profit Analysis

96

(5)

Break-Even Point

97

(3)

Target Profit

100

(1)

Graphic Approach to Cost-Volume-Profit Analysis

101

(4)

Cost-Volume-Profit (Break-Even) Chart

101

(2)

Profit-Volume Chart

103

(1)

Use of Computers in Cost-Volume-Profit Analysis

104

(1)

Sales Mix Considerations

105

(2)

Special Cost-Volume-Profit Relationships

107

(1)

Margin of Safety

107

(1)

Operating Leverage

107

(1)

Assumptions of Cost-Volume-Profit Analysis

108

(23)

Profit Reporting for Management Analysis

131

(42)

The Income Statement Under Variable Costing and Absorption Costing

132

(5)

Income from Operations When Units Manufactured Equal Units Sold

134

(1)

Income from Operations When Units Manufactured Exceed Units Sold

134

(1)

Income from Operations When Units Manufactured Are Less Than Units Sold